Tuesday, July 20, 2010

Head in the Clouds

I like RAX here. It's at the bottom of it's range. It definitely could get boot stomped. But then I'll buy it again at 12. I like it here and down to 12, so long as the fundamentals don't change.

The writing is on the wall, in terms of cloud-computing taking over the world. While I will only dedicate a standard maximum position size of 10% to RAX, I will use up to 20% of my portfolio to exploit cloud computing (SaaS, IaaS) trends and 10% for 4G flays, as per monsieur Le Fly.

I'm not buying anything here, as I already have an 80% position in and around these levels. I will only add if it goes lower. If I were more risk-averse or believed any less in my thesis I would hold a tight stop in case it got beat the hell down at this support.

I'm not recommending that you buy RAX

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